Bequests
Bequests may be made by will or through revocable living trusts by making a charity a beneficiary of the trust. The vast majority of legacy gifts are in the form of bequests.

Revocable and Irrevocable Living Trusts
Usually benefit the charity with a remainder interest.

Outright Gifts
These are the most preferred types of gifts because a charity can invest the proceeds immediately. Outright gifts may take the form of cash, negotiable securities, and gifts of tangible and real property.

Charitable Remainder Trusts
A charitable remainder trust allows a donor to give property or cash which will be used by a third party (the trustee) to earn income which is paid to income beneficiaries (usually the donor) for life, a period of years, or a combination of the two. At the end of the payment period, the trust principal is given to the charitable remaindermen, the charity or charities named in the trust document. Two forms of charitable remainder trusts are used:

a. The unitrust provides an income based on a percentage of the trust principal which is chosen by the donor at the outset. Donors can add gifts to existing unitrusts.

b. The annuity trust provides a fixed income (a percentage of the trust amount) which is chosen by the donor at the outset. The payments don’t change and will come from trust principal should earned income not be sufficient. Donors may not add gifts to existing annuity trusts since it would not increase their income.

Pooled Income Fund
This is an investment fund similar to a mutual fund made up of assets irrevocably contributed by many donors. Contributions are commingled for investment purposes. The net income is paid to the donor in proportion to the number of units allocated to each donor. When the income interests of all of the beneficiaries of a gift from a donor end, the principal of the fund attributed to that gift (the remainder interest) goes to the charity.

Charitable Lead Trusts
The trustee of a charitable lead trust (also known as a charitable income trust) pays the income of the trust to a charity or charities. At the end of a fixed period of time, the trust principal is transferred to one or more non-charitable beneficiaries.

Retained Life Interests in Gifts of Real Property
This arrangement allows a donor to make a gift of the remainder interest (that which is left after the donor’s lifetime) in a personal residence or farm to charity and reserve to the donor a life estate (the privilege to live in the home for life). These gifts are contracts and the donor agrees to pay all property tax due, maintain the residence and provide adequate insurance. Some charities take remainder interest gifts in exchange for a gift annuity.

Life Insurance
A donor may give a paid up life insurance policy to charity, naming it both owner and irrevocable beneficiary or a policy that is not paid up if it has a current value. You may terminate the policy for current value or keep it in force if the donor continues to make gifts that equal the cost of premiums for that policy.

IRAs and Retirement Plans
ACS can be named a beneficiary of IRA’s, Keogh plans, or other qualified retirement plans. These assets, if left to heirs, would be subject not only to immediate estate tax, but also to income tax when distributed.

Charitable Gift Annuity
The gift annuity is a contract between a charity and donor which provides for a gift from the donor and annuity payments from the charity. Payments may be annual, semi-annual, quarterly or monthly. The gift annuity process is highly regulated by the State Insurance Commissioner who issues licenses and can require substantial reserves for each gift annuity.

The Legacy Giving Committee
David Sacarelos, Chair - Partner and CPA, Seiler and Company
Mark Shepherd - Attorney and Partner, Crist, Biorn, Schultz and Shepherd
Nancy Hay - Community Volunteer
Evan Lurie - Financial Services Professional, Mass Mutual Financial Group
Aarika Riddle - Development and Marketing Director, Adolescent Counseling Services

The Legacy Giving Advisory Committee
Alan Loveless - Realtor, Coldwell Banker
Sylvie Way - Retired CPA and Community Volunteer
Nancy Weeks Rossen - Community Volunteer
Curt Weil - Financial Advisor and President, Laseck Weil Wealth Advisory Group, LLC

For more information, please contact:

Aarika Riddle
Development and Marketing Director
Adolescent Counseling Services
4000 Middlefield Road, Suite FH
Palo Alto, CA 94303
650.424.0852 x 103